Vytal: international driver of circular economy

 - KölnBusiness

 

Vytal is on course for success with their deposit-free reusable packaging system. In our interview, founder and Managing Director Tim Breker explains how Vytal aims to promote sustainable consumption worldwide.

 

You were listed as one of the Top 50 Startups 2022 by the renowned agency Jung von Matt. You have also been nominated for the German Sustainability Award. How does that make you feel?

This is undoubtedly an exciting time for Vytal and we are incredibly proud of what we have achieved so far. These acknowledgements are a confirmation that our efforts in the field of circular packaging are recognised and appreciated by the public. And a great honour for the hard work of our team. We are proud that we can offer our deposit-free reusable packaging system via the Vytal app and thus positively change consumer behaviour. At the same time, this success reminds us that we have a huge responsibility. We are aware that the world is looking for sustainable alternatives to minimise the environmental impact of packaging and optimise the use of resources.

 

Recently, you presented Vytal in front of Apple CEO Tim Cook.

That was an absolute highlight for us. It shows that even the largest and most influential companies in the world are interested in our knowledge of circular economy, our sustainable packaging solution and our operating system for reusable packaging.

 

Which innovative technologies do you use?

Many. Our technology platform was developed in-house by our highly qualified tech team. We use QR codes and RFID chips to efficiently track our reusable packaging. We also rely on IoT solutions to monitor fill levels, as well as data analytics and artificial intelligence to understand consumer behaviour and promote sustainable consumption. Our technology is critical to our mission of establishing truly sustainable and highly efficient reusable systems and ultimately ridding our planet of single-use waste.

 

Your goal is to become the world's leading technology platform for circular economy and reusable packaging. How will you get there?

Our vision is to reduce single-use packaging and promote sustainable consumption, not just in this country but worldwide. We want to integrate reusable packaging into everyday culture step by step. We see a future in which reusable packaging is not only a matter of course in supermarkets, but also in cafeterias, restaurants, cafés and at events. We are working towards this by offering our reusable system free of charge via the Vytal app and, at the same time, presenting the benefits of smart reusable packaging to the general public.

 

You recently raised more than 2.8 million euros from over 1,700 investors via a crowdinvesting campaign. What are your plans?

The crowdinvesting campaign was a huge motivational boost for us. It showed us how many people are working with us on a circular economy and are supporting Vytal's continued growth. In the last 18 months, we have not only tripled our partner network, but also gained more and more partners outside of Germany. Our technology platform has also made a huge leap forward, so that together with thousands of partners and hundreds of thousands of consumers, we are now replacing millions of items of disposable packaging every year.

 

You took part in our Scaleup Programme this year. What are you plans for international expansion? Which markets do you want to enter next?

We are pursuing a two-track expansion strategy with the aim of steadily growing the global community of Vytal users. We are active ourselves in large foreign markets such as France and the UK. In smaller markets, we work with local entrepreneurs who set up the Vytal reusable packaging system locally as franchisees. The Vytal app is currently available in ten languages and Vytal containers can already be used in 15 countries.

 

You already work with over 6,500 partners in Germany, Austria and France. Do you have any advice for startups that are about to expand abroad?

It has paid off for us to work with local people. I can also definitely recommend not underestimating the effort that needs to go into it.

 

Why did you choose Cologne as your location?

In addition to the personal connection, the proximity to the surrounding top universities and the population density in NRW also speak in favour of Cologne.

 

What do you value here? Is there anything that sets Cologne apart from other startup cities?

It's very easy to get to know people in Cologne. The people here are very open and unpretentious. That is a decisive factor for us when recruiting.

 

To what extent does the close-knit startup ecosystem contribute to your success?

The mutual support among founders in Cologne is fantastic. And you can always get a good introduction to the people you want to talk to via this or that person in the ecosystem.

 

Vytal focuses on a deposit-free and digital reusable packaging solution for caterers, retailers and delivery services. How much single-use packaging has been avoided so far?

To date, our B2B customers and users of the Vytal app have replaced over eight million single-use packaging items with high-quality and functional reusable containers.

 

Since 1 January 2023, restaurants in Germany have been obliged to offer reusable packaging. How has this change in the law affected your business?

First of all, the reusable packaging obligation is absolutely a step in the right direction, because it is a misconception that we can recycle away our waste problem or that we can manage without changes in business processes or consumer behaviour. On the contrary: in the last two decades, the amount of packaging waste has risen constantly and has even exceeded the growth in gross domestic product.

However, in our opinion, the implementation of the reusable packaging obligation has so far not been at all satisfactory. Although the law has led to more catering establishments joining a reusable system such as Vytal - we were able to triple the number of our partner establishments in the months surrounding the change in the law - the overall awareness of reusable packaging in the catering industry has been short-lived. Also, the equal offer of reusable packaging to single-use, required by the law, is not happening yet. In many cases, consumers still are not given the visible choice to replace environmentally harmful disposable containers with a reusable packaging solution.

 

And yet: reusable packaging has a long tradition in Germany. Is that a benefit for you?

Germany has an impressive track record in the development and promotion of reusable packaging systems. We are firmly convinced that Germany is the most advanced country in the field of reusable packaging and has the potential to play a pioneering role in the global spread of reusable packaging systems. We are building on this experience and expertise with our mission at Vytal.

 

In addition to reusable containers, you now also have a reusable transport bag. What can Vytal users look forward to next?

Like a huge decentralised library, the Vytal technology platform can make all items available for borrowing or sharing in the spirit of the sharing economy. So if the delivery food comes in reusable containers, why not return the delivery bag to the catering service after use so that it can be used again? This simple principle of the circular economy has massive savings potential for our resource consumption and we would do well to continue to promote the reuse and optimal utilisation of objects in society. Stay tuned: We already have some cool features and partnerships up our sleeves for next year!

 

Have you encountered any obstacles along the way? How did you overcome them and what were the most important learnings for the team?

Getting up again after falling is probably one of the most important qualities for startup teams. We also faced challenges this year, downsized our team and honed our strategy. It was important for us to communicate well and remain agile.

 

You have been nominated as one of 15 startups for the Cologne Masterclass. On 25 January 2024, you will be pitching to top investors at the Matching Day. What are your expectations for the event?

We're looking forward to making contact with investors, network partners and the other startups.

 

What kind of investors are you looking for?

We want to work with investors who share our vision and want to work with us to optimise resource consumption and make the circular economy a reality. At Vytal, sustainability doesn't mean to abstain; on the contrary, thanks to our technology platform, we create real added value on the B2B and B2C side. With its experienced consumers in resuable packing, Germany offers the most attractive market for reusable products. Whoever leads the market in Germany has the best chance of becoming the dominant player worldwide. We are looking for investors who will accompany us on this path and make Vytal a global success.

 

How has the Scaleup Programme helped you?

The Scaleup Programme is great because it puts us in contact with impressive experts and brings together the most ambitious founders in the region. The exchange generated a lot of insights, initiated contacts and we were able to take part in great events.

 

For Vytal, it all started with the NRW startup grant. What was going through your minds before the pitch?

We definitely wanted to have a good time. Investors and pitch juries are people. It was important for us to convey our enthusiasm and passion for the cause and to show that it is fun to work with us and to support and accompany us.

 

What advice would you give other founders for their first pitch?

I once worked as a teacher for two years. Since then, I often think during pitches that nobody in the room is going to start throwing chairs around. So it will definitely be good. In my opinion, the trick is to find the right (personal) mix of very good preparation and spontaneous inspiration and to connect with the audience.

 

Would you recommend crowdinvesting to other startups? If so, why?

Crowdinvesting turned out to be a great success for us. We can therefore definitely recommend it to others and have already done so. We have already shared our learnings with several other companies. Especially companies with a large newsletter, customer base or fan base have the best prerequisites for a successful crowdinvesting campaign.

 

What do you wish you had known beforehand?

Founding is a marathon, not a sprint. Therefore, managing your own energy is an important skill from day one.

 

3 Startup tips from Vytal  

  1. Find a field of activity that you are deeply passionate about. 
  2. Develop your service or product together with the users, remain open and flexible.
  3. Start as a co-founding team and build up a valuable network of helpful contacts.